Campbell Fuller, Manager of Media and Communications at the Insurance Council of Australia, say that one of the biggest problems faced by the Insurance Council is non-insurance and under insurance.

"The question then becomes; what happens to those people? Those families and those communities where the building and the contents are not covered by insurance.

"The answer is they become very much reliant on their families, their friends, community organisations and government agencies to get them back on their feet and it's pretty unlikely that any of the resources received will be enough to replace or rebuild a home," Mr Fuller says.

The Insurance Council recommends that people assess their needs, shop around with different insurance companies and ultimately make sure that the insurance policies they consider and purchase will meet their needs.

Mr Fuller says that people need to invest time when picking a policy and advises people not to choose a policy according to price.

If you are a renter, then Mr Fuller suggests having a conversation with your landlord, because your property, furniture and so on, will most likely not be covered in their insurance policy.